India Cements’ consolidated net profit declined 10 per cent for the fourth quarter ended March 31, 2009 with profit after tax standing at Rs. 432.18 crore, as compared to Rs. 637.55 crore in 2007-08. The company suffered foreign exchange losses due to currency depreciation that adversely impacted its profit margin despite reporting higher gross turnover of Rs. 3,954.53 crore during 2008-09.

N. Srinivasan, Vice-Chairman and Managing Director of India Cements said that company’s average price realization stood at Rs. 4,116 tonnes as compared to Rs. 3,836 tonnes in the same period last year. This increase in input costs, due to rise in prices of coal and gypsum, impacted its margin, forcing it to post lower net profit for the period.

Meanwhile, the company has announced a dividend of Rs 2 per equity share of Rs 10 for 2008-09. Its board has also approved a proposal to raise funds worth Rs. 1,500 core in next two years. The company is set to acquire a private coal mine in Indonesia through its newly formed subsidiary.

Mr. Srinivasan said: “We have identified the coal mine there. Technical due diligence is over. We will do the legal due diligence of the coal assets.”